Bitcoin is consolidating within a tightening wedge pattern between $109,000 and $123,000, nearing a decisive breakout point at $118,782. Recent market activity included a bull trap near the $122,000 level, where prices briefly rallied before retreating, reflecting ongoing volatility.
Substantial capital inflows of $82 billion over the past 30 days underscore persistent investor interest. While this marks a significant accumulation, it remains below the December 2024 peak inflow of $135 billion.
The market navigates an emotional cycle characterized by alternating phases of optimism, bull traps, panic, and silence. These psychological dynamics continue to influence Bitcoin’s price trajectory.
Technical thresholds remain paramount: A confirmed breakout above $122,000 resistance could initiate strong bullish momentum. Conversely, failure to hold the $116,000 support level might accelerate bearish pressure.
Traders are closely monitoring the $122,000 resistance and $116,000 support as critical indicators for Bitcoin’s next directional movement.